New findings indicate that a tiny fraction of traders are dominating the profits on Polymarket, with fewer than 1% of wallets accounting for roughly half of all gains in key markets. According to a report by blockchain analytics firm Solidus Labs, this profit concentration is extreme, with 0.55% of profitable maker wallets and 0.26% of winning taker wallets capturing around 50% of gains between December 2025 and February 2026. This translates to approximately $8 million out of $16 million in profits.
The data supports previous academic research that a small minority of traders drives price discovery, with around 3% of Polymarket traders responsible for most price movements. The report highlights a significant imbalance between a small group of sophisticated traders and the broader base of participants, with the former operating with substantial advantages. Additionally, the study identifies signs of wash trading, with around 15% of volume in some markets exhibiting patterns consistent with self-trading or economically neutral positions. While some of this volume may be attributed to incentive farming, it is essential to approach these findings with a critical perspective, considering the firm's potential biases as a market surveillance platform provider.